10-06-2010, 04:48 PM
Dear,
You are requested to kindly grasp IAS 12, Deferred Tax, so that your basic queries with regard to the nature of deferred tax(i.e. in which cases it becomes Assets and in which cases a liability), may be resolved.
As far as the accounts of lucky cement is concerned, please note that in 2007, Deferred Tax is being added, which indicates deferred tax liability; however, in 2008, deferred tax asset must have been arisen, which wiped off the deferred tax liability altogether, and deferred tax asset has been offset from the current tax obligation. In the end, figure shown in ( ) is being added, since it is a deferred income (because tax obligation will be reduced from the deferred tax asset, being shown in parentheses).
Let me know if confusion is yet to be resolved, however, you are to go through IAS 12.
Best Regards,
Faisal.
You are requested to kindly grasp IAS 12, Deferred Tax, so that your basic queries with regard to the nature of deferred tax(i.e. in which cases it becomes Assets and in which cases a liability), may be resolved.
As far as the accounts of lucky cement is concerned, please note that in 2007, Deferred Tax is being added, which indicates deferred tax liability; however, in 2008, deferred tax asset must have been arisen, which wiped off the deferred tax liability altogether, and deferred tax asset has been offset from the current tax obligation. In the end, figure shown in ( ) is being added, since it is a deferred income (because tax obligation will be reduced from the deferred tax asset, being shown in parentheses).
Let me know if confusion is yet to be resolved, however, you are to go through IAS 12.
Best Regards,
Faisal.
